Just after Moto X and Moto G smartphones
Google has now confirmed in a blog post that it has sold Motorola Mobility division to Lenovo for US $2.91 billion. The news comes as a surprise especially considering that Google has just started to see the fruits of the deal, with Moto X and Moto G smartphones, which was struck back in 2011.
In case you forgot about it, Google acquired Motorola Mobility division back in 2011 for a rather steep US $12.5 billion and now, decided to sell that same division to Lenovo for US $2.91 billion.
According to the deal details, Lenovo will pay US $660 million in cash and US $750 million in stock once the deal is done, while the rest of the money, or US $1.5 billion, will come through a three-year morissory note. The deal includes the hardware unit, brand and trademark of Motorola Mobility as well as over 2,000 patent assets, while Google keeps the vast majority of patents, which is over 10,000.
Motorola Mobility CEO, Dennis Woodside, said: “As part of Lenovo, Motorola Mobility will have a rapid path to achieving our goal of reaching the next 100 million people with the mobile Internet. With the recent launches of Moto X and Moto G, we have tremendous momentum right now and Lenovo’s hardware expertise and global reach will only help to accelerate this.”
Google's CEO Larry Page noted that "Motorola will be better served by Lenovo—which has a rapidly growing smartphone business and is the largest (and fastest-growing) PC manufacturer in the world. This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere.”
Although Google's decision to sell Motorola Mobility division might sounds like a surprise, Google did end up with a bunch of patents and according to VentureBeat site, all was not well in the Motorola Mobility division after Google acquire it, especially due to differences between Google's and Motorola's way of doing projects and certain other things.
In any case and although Lenovo is already quite an interesting player on the smartphone market, it has now become a formidable force with Motorola Mobility division and we will certainly keep our eye on it.
Source: GoogleBlog.com.
In case you forgot about it, Google acquired Motorola Mobility division back in 2011 for a rather steep US $12.5 billion and now, decided to sell that same division to Lenovo for US $2.91 billion.
According to the deal details, Lenovo will pay US $660 million in cash and US $750 million in stock once the deal is done, while the rest of the money, or US $1.5 billion, will come through a three-year morissory note. The deal includes the hardware unit, brand and trademark of Motorola Mobility as well as over 2,000 patent assets, while Google keeps the vast majority of patents, which is over 10,000.
Motorola Mobility CEO, Dennis Woodside, said: “As part of Lenovo, Motorola Mobility will have a rapid path to achieving our goal of reaching the next 100 million people with the mobile Internet. With the recent launches of Moto X and Moto G, we have tremendous momentum right now and Lenovo’s hardware expertise and global reach will only help to accelerate this.”
Google's CEO Larry Page noted that "Motorola will be better served by Lenovo—which has a rapidly growing smartphone business and is the largest (and fastest-growing) PC manufacturer in the world. This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere.”
Although Google's decision to sell Motorola Mobility division might sounds like a surprise, Google did end up with a bunch of patents and according to VentureBeat site, all was not well in the Motorola Mobility division after Google acquire it, especially due to differences between Google's and Motorola's way of doing projects and certain other things.
In any case and although Lenovo is already quite an interesting player on the smartphone market, it has now become a formidable force with Motorola Mobility division and we will certainly keep our eye on it.
Source: GoogleBlog.com.
News by Luca Rocchi and Marc Büchel - German Translation by Paul Görnhardt - Italian Translation by Francesco Daghini
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